What Is Customer Acquisition Cost (CAC)? The Number That Determines Whether Growth Is Creating Value or Destroying It
Growth has a way of seducing people. A startup announces that it doubled its customer base. Investors applaud. Employees celebrate. Founders post charts with upward-sloping lines that seem to promise an inevitable future. And yet growth, by itself, can be remarkably deceptive. A company can acquire thousands of customers and still lose money. It can increase revenue while weakening its...
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